Matthew Harrigan

Matthew Harrigan of The Benchmark Company LLC questioned VEON's strategy for unlocking the valuation of its fast-growing digital businesses and asked for perspective on how generative AI's impact might differ in frontier markets versus developed economies.

Answer

Group CEO Kaan Terzioğlu stated that while value crystallization is an opportunity, the immediate focus is on growing digital revenues to over 20% of the total. He described VEON's AI strategy as creating an 'AI generation telco' that uses localized LLMs to provide augmented skills and services, moving beyond connectivity to enhance customers' lives.

Matthew Harrigan of The Benchmark Company LLC questioned how VEON plans to unlock the valuation of its fast-growing digital businesses and inquired about the impact of generative AI in frontier markets versus developed economies.

Answer

CEO Kaan Terzioğlu acknowledged the valuation disconnect and suggested that once digital services surpass 20% of total revenue, the company may explore structures to crystallize their value. Regarding AI, he described it as "augmented intelligence" that will create new value propositions by enhancing user skill sets through localized LLMs, moving beyond simple connectivity or digital service sales.

Matthew Harrigan of The Benchmark Company LLC questioned VEON's valuation, suggesting the market undervalues both its core telecom and fast-growing digital businesses, and asked about potential financial engineering like a tracking stock to unlock value. He also inquired about the impact of generative AI in frontier markets.

Answer

Group CEO Kaan Terzioğlu acknowledged the value crystallization opportunity but stated the timing is not yet right, preferring to wait until digital revenues exceed 20% of the total. On AI, he described a strategy of providing 'augmented skill sets' to customers through local language models and agentic AI tools, moving beyond selling data to enhancing users' capabilities.

Matthew Harrigan asked about TelevisaUnivision's strategy for integrating local news and distinctive content from linear TV onto the ViX streaming platform, given the shift in U.S. consumption habits. He also inquired about ongoing VC-side advertising investments and the company's perspective on the stability of the U.S.-Mexico economic relationship, including tariffs and nearshoring.

Answer

Alfonso de Angoitia Noriega, Co-CEO of Grupo Televisa, confirmed the importance and strength of local news, stating that the company is exploring including this content on ViX. He highlighted the success of media-for-equity deals with startups, which leverage unsold inventory to position brands and convert companies into regular clients. Regarding the U.S.-Mexico economic relationship, Mr. de Angoitia praised President Sheinbaum's handling of trade negotiations, emphasizing the integrated nature of the border economy and expressing confidence in reaching a favorable deal.

Matthew Harrigan asked about TelevisaUnivision's strategy for integrating local news content into ViX, the company's approach to VC-side advertising investments, and the general outlook on the U.S.-Mexico economic relationship, tariffs, and nearshoring.

Answer

Alfonso de Angoitia Noriega, Co-CEO of Grupo Televisa, explained that local news is a strong asset and its inclusion in ViX is being explored. He confirmed the continuation of media for equity deals with startups, leveraging unsold inventory to generate value and convert startups into regular clients. Regarding U.S.-Mexico relations, he praised President Sheinbaum's handling of trade negotiations, emphasizing the integrated nature of the border economy and anticipating a favorable outcome.

Matthew Harrigan from The Benchmark Company LLC questioned the strategy for monetizing digital content on social media and expressed concern about potential US tariff impacts on content produced in Mexico.

Answer

Co-CEO Alfonso de Angoitia Noriega highlighted the hiring of a new head of sales from TikTok to enhance digital ad sales, noting VIX is now a billion-dollar business. Regarding tariffs, he explained that digital content is currently exempt under the USMCA as it's not considered a physical good, and while the future is unpredictable, they believe they are on solid ground.

Matthew Harrigan asked about the potential to increase the profile of or monetize the company's venture capital portfolio in Mexico. He also questioned how Televisa views the evolving AVOD and SVOD competitive landscape, especially with increased investment from rivals like Netflix.

Answer

Executive Alfonso de Angoitia Noriega welcomed the competition in streaming, stating it reinforces Televisa's strategy and highlights its unique advantages as the world's largest and most efficient producer of Spanish-language content. Regarding the VC portfolio, he confirmed the company has made attractive media-for-equity deals in leading companies like Rappi and Kavak over the past several years and expects to begin monetizing these investments in the near future.

Matthew Harrigan asked for an update on the 2600Hz platform, including its organic growth and monetization, and also inquired about any inbound demand for AirDial from Europe.

Answer

CEO Eric Stang stated that the focus for 2600Hz this year is integrating Ooma's IP to strengthen its turnkey applications, positioning it for growth next year. Regarding AirDial, he confirmed the focus remains on North America due to the significant market opportunity, and international expansion would only be considered with a large lead carrier or customer.

Matthew Harrigan of The Benchmark Company asked if Ooma is in discussions with other cable companies for AirDial partnerships, following the Comcast deal. He also inquired about the competitive landscape and workarounds for copper line replacement in Europe.

Answer

CEO Eric Stang confirmed a broad effort to engage new reseller partners and that the Comcast deal can open doors with other cable operators. Regarding Europe, Stang noted that AirDial is not currently sold outside North America and that European companies have so far taken a slower approach to the POTS replacement problem, but he believes opportunities will unfold over time.

Matthew Harrigan of The Benchmark Company asked if other cable companies are showing interest in AirDial following the Comcast partnership and inquired about the POTS replacement landscape and competitors in Europe.

Answer

CEO Eric Stang confirmed a broad effort to engage new reseller partners, noting that success with a major cable operator can open doors with others. Regarding Europe, he stated that AirDial is not currently sold there and that European companies have generally been slower to address the copper-line replacement issue, though discussions are ongoing.

Asked about the monetization strategy for 2600Hz, whether guidance implies a slowdown in the core Ooma Office business, the competitive landscape and adoption rate in the POTS market, and the company's approach to international markets.

Answer

Growth from 2600Hz will be driven primarily by new customer wins, with a slow revenue ramp expected. The cautious outlook reflects uncertainty in the timing of new partner ramps (like AirDial), not a slowdown in the core SMB business. The POTS market adoption is slow due to customer inertia, not strong competition; Ooma believes it has the best product and partners to win. International expansion is a future opportunity, with the current focus remaining on North America.

Inquired about discussions with other major cable companies, whether new partnership wins are incremental to the EBITDA growth outlook, and the company's plans for expanding AirDial into Europe.

Answer

The CEO could not comment on specific partnership discussions but noted market momentum is strong. He confirmed that new partnership revenue would be additive to their existing plans for significant EBITDA growth. The company is mindful of the European market for AirDial and has considered the necessary product modifications, but has no immediate plans to announce.

Matthew Harrigan asked if Ooma is in discussions with the main competitor to its newly signed national cable partner, given that such companies often adopt similar technologies. He also questioned whether these new large deals were incremental to the company's double-digit EBITDA growth ambitions and inquired about plans for AirDial in Europe.

Answer

CEO Eric Stang could not comment on specific partner discussions but confirmed they are busy with a long list of prospects. He stated that the new partnerships are 'additive' to their existing plans to drive meaningful EBITDA growth, which they intend to achieve regardless. Regarding Europe, he acknowledged they are mindful of the AirDial opportunity there and the necessary product modifications but have nothing to announce at this time.

Matthew Harrigan asked for more detail on the total addressable market (TAM) for the Ooma Telo residential product, both domestically and internationally, following the news of the ILEC partnership. He also sought to clarify a comment about the new partner's size.

Answer

CEO Eric Stang estimated the North American residential POTS market at approximately 40 million lines, noting Ooma does not currently sell Telo in Europe. He highlighted strong demand by citing a 20-25% take rate in some rural rollouts. Stang also clarified his earlier statement, confirming the new partner is a 'top 10 ILEC' in the U.S., not a top 10 company based on overall consumer relationships.

Matthew Harrigan of The Benchmark Company, LLC asked about the confidence in reviving 'Spartacus' after 12 years, its potential to resonate with STARZ's core demographics, and its prospects as a long-running series. He also inquired about the early changes in the relationship with Lionsgate Television post-separation.

Answer

President and CEO Jeffrey Hirsch expressed high confidence in 'Spartacus,' citing persistent fan demand and strong social media intensity. He noted the new iteration includes an African American female gladiator to help merge core demos. Regarding Lionsgate, Hirsch described the relationship as 'great' and 'as strong if not better,' highlighting successful collaboration on projects like the 'Power' prequel 'Origins'.

Matthew Harrigan questioned the confidence in reviving 'Spartacus' after twelve years, asking how it would resonate with STARZ's core urban and female demographics. He also inquired about the early nature of the post-separation business relationship with Lionsgate Television.

Answer

President and CEO Jeffrey Hirsch affirmed that there is immense and persistent audience demand for 'Spartacus,' confirmed by market research and social media engagement. He noted the new series will feature an African American female gladiator to broaden its appeal to core demos. Regarding Lionsgate, Hirsch described the relationship as 'great' and productive, citing a smooth, arm's-length collaboration on new projects like the 'Power' prequel 'Origins.'

Questioned the strategy behind reviving 'Spartacus' after twelve years, specifically regarding audience awareness, its appeal to the network's core demographics, and its potential as a long-running series. He also asked about the current nature of the relationship with the newly separated Lionsgate television.

Answer

There is significant pent-up demand and social media buzz for the return of 'Spartacus'. To broaden its appeal to core demos, the new iteration includes an African American female gladiator. The relationship with Lionsgate is described as great, if not better, now that it's an arm's length relationship, with continued collaboration on key projects like 'Spartacus' and 'Origins'.

Matthew Harrigan of The Benchmark Company LLC inquired about innovations in marketing to reach the 80 million TAM and the company's perspective on generative AI tools for content creation.

Answer

President & CEO Jeffrey Hirsch and President of Domestic Networks Alison Hoffman detailed their dynamic marketing approach, which involves constant A/B testing across various platforms and has reduced subscriber acquisition costs by nearly 50%. Regarding AI, Hirsch stated STARZ is a 'fast follower' on the content side but is more focused on leveraging AI for data analysis to improve customer acquisition, retention, and content scheduling.

Matthew Harrigan of The Benchmark Company LLC asked about the company's plans to innovate its marketing strategies to better access its 80 million TAM and its perspective on the potential impact of generative AI tools on content production.

Answer

President & CEO Jeffrey Hirsch and President of Domestic Networks Alison Hoffman detailed their dynamic marketing approach, which involves constant A/B testing and leveraging data to efficiently target core demographics, noting a 50% reduction in subscriber acquisition cost (SAC). On AI, Hirsch stated Starz is focused on using it for acquisition and retention efficiencies, while being a "fast follower" on the content creation side.

Matthew Harrigan of The Benchmark Company, LLC posed two questions: one on CSG's realistic perspective on the maturation of AI versus market hype, and another on the opportunity to fix complex billing system integrations for telecom clients.

Answer

CEO Brian Shepherd stated that CSG is becoming more bullish on AI's ability to accelerate profitability, expecting it to help reach the upper end of margin targets faster than previously thought. CFO Hai Tran addressed the second question, noting that while billing conversions are major decisions for clients, the trend towards digital simplification and SaaS-based technology is a business imperative that plays to CSG's strengths and is driving sales wins.

Matthew Harrigan asked about CSG's M&A strategy, including ideal targets and valuation views, and the competitive imperative for major clients like Charter and Comcast to adopt unified billing.

Answer

CEO Brian Shepherd stated that while CSG feels no pressure to do a deal, it sees an active M&A market. Ideal targets are SaaS technology companies that accelerate CSG's core monetization and engagement strategy, or highly-accretive scale deals. Regarding his largest clients, he noted that the trend toward converged billing is a global phenomenon driven by competitive pressure to simplify operations and lower costs, and CSG aims to provide innovative solutions to support these efforts.

Matthew Harrigan questioned how CSG's confidence in the benefits of AI has changed recently, both for its own business and the broader economy. He also asked about any concerns related to government business or heightened foreign exchange volatility.

Answer

CEO Brian Shepherd stated CSG focuses on practical AI applications like 'Bill Explainer.ai' to reduce customer churn and call center costs, rather than hype. CFO Hai Tran added that CSG leverages partners for AI tools and expects costs to decrease, driving internal automation and efficiency. Tran also confirmed the company has minimal direct exposure to U.S. government contracts and Shepherd affirmed no concerns about the 2025 revenue guidance related to these factors.

Matthew Harrigan questioned the sustainability of margin expansion, asking if long-term contracts with major clients like Comcast could limit future margin increases and if continued diversification could lead to a further upward reset in margin targets.

Answer

CEO Brian Shepherd asserted that the company expects to operate within and progress through its new 18-20% adjusted operating margin range. He clarified that major customer contracts are not a drag on margins; rather, the profitability is a direct result of R&D investments that deliver significant value to these clients. He emphasized that CSG's product-based model is designed to reward innovation with both top-line and bottom-line growth.

Matthew Harrigan of The Benchmark Company LLC asked about the total addressable market for family safety, the competitive landscape, and the level of in-house development by mobile network operators (MNOs) given the market's size.

Answer

President, CEO & Chairman William Smith explained that MNOs, after focusing on 5G, are now seeking new growth opportunities and recognize the high value of family subscribers who churn less. He asserted that Smith Micro is leading this market shift with its AI-enabled SafePath platform and new offerings for kids' and senior phones. Smith highlighted the senior market as a significant, untapped opportunity that could be even larger than the kids' market, positioning the company for renewed growth.

The analyst inquired about the total addressable market (TAM) for family safety, any perceived changes in its size, and the competitive landscape, particularly regarding in-house development by mobile network operators (MNOs).

Answer

William Smith responded that MNOs are increasingly focused on the family market to reduce churn and are looking for new growth opportunities. He believes the family safety market is entering a new era of relevance, with Smith Micro leading through its AI-powered offerings and new solutions for kids' and seniors' phones, the latter of which is seen as a huge, untapped market. He expressed confidence that the company is entering a period of renewed growth.

Inquired about the growing importance of SafePath's AI features for devices beyond smartphones, such as tablets, and asked about the competitive landscape, particularly how carriers without Smith Micro's solution are faring.

Answer

The executive responded that the company's advanced development in AI and SafePath OS makes it very difficult for carriers to build comparable solutions in-house. He argued that attracting valuable family subscribers requires the best features, making Smith Micro the superior partner. He also confirmed that their OS solution works on tablets from major Android manufacturers that carriers already sell.

Asked about the competitive landscape, specifically how Verizon is faring with its in-house solution, and about the company's long-term, five-year revenue vision.

Answer

The company's strength is in servicing carriers, and its app ratings are superior to in-house solutions like Verizon's. The pivot to SafePath OS, which aligns with carriers' core business of adding subscribers, creates a massive opportunity. The company believes it can return to previous highs of over $100 million in revenue and significant free cash flow in the future.

Matthew Harrigan asked about former customer Verizon's performance with its in-house solution, the broader competitive landscape, and the company's long-term, five-year vision for revenue potential following its strategic pivot.

Answer

William Smith, Chairman, President, and CEO, contrasted Smith Micro's high app store ratings with competitors who build their own solutions, suggesting a quality advantage. He stated that competitors in the OS-level safety space are not heavily focused on the carrier market. For the long-term vision, Smith recalled a prior period of generating over $100 million in annual revenue, expressing confidence that the new strategy of aligning with carriers' core business of adding subscribers could return the company to that level of success.

Asked about the efficiency and cost of new client implementations, the competitive landscape regarding in-house solutions by carriers, and the potential value of a European MNO relationship compared to a U.S. one.

Answer

New implementations are faster and cheaper because all SafePath offerings share a single, mature code base. Competitors' in-house solutions have poor user ratings, while Smith Micro's are highly rated, which is a key advantage. The European market is a major greenfield opportunity considered to be as large as the U.S. market.

Matthew Harrigan asked about the company's ability to launch new products with low implementation costs, the competitive landscape against carriers' in-house solutions, and the potential value of a European MNO relationship compared to a U.S. one.

Answer

CEO William Smith attributed low implementation costs to the unified SafePath code base and highlighted that Smith Micro's high app ratings are a key differentiator against the poor ratings of carrier in-house solutions. CFO James Kempton added that the European market represents a significant 'Greenfield' opportunity, potentially as large as the U.S. market.

Matthew Harrigan inquired about Zoom's approach to developing its own language models and how advancements in algorithms are affecting the business, both in terms of cost efficiency and new opportunities.

Answer

CEO Eric Yuan described Zoom's 'federated AI approach,' which combines its own proprietary models with integrations from partners like OpenAI and Anthropic. He explained that significant optimization work allows Zoom to offer the core AI Companion for free by balancing cost and value. He noted the paid custom AI Companion's cost is driven more by system integration than by the underlying AI models.

Matthew Harrigan from Benchmark inquired about whether emerging AI regulations in the U.S. or Europe could potentially dampen Zoom's innovation.

Answer

CEO Eric Yuan stated that Zoom is taking a very responsible approach to AI and has seen extremely limited impact from regulation so far. He reiterated the company's core policy of not using any customer data to train its AI models, which builds trust and aligns with customer expectations. He noted that while the company monitors the rapidly evolving regulatory landscape, it has not affected their ability to deliver features like meeting summaries.

Matthew Harrigan asked about the impact of Puerto Rico's macro environment, including federal subsidies and political issues, on the business and inquired about internal EBITDA targets. He also questioned the potential risk from a change in the U.S. administration.

Answer

CEO Balan Nair described Puerto Rico's macro environment as good, with rational competitors and a stable population. He noted that while declining FCC funds impacted past revenue, the business is not heavily dependent on subsidies now. He expressed confidence in a turnaround by fixing internal issues and leveraging strong network assets. Regarding politics, he stated they see no negative impact on the ground and that the local governor is a strong Trump supporter.

Matthew Harrigan from The Benchmark Company asked about the potential impact of a significantly stronger U.S. dollar on the company's operations and capital structure, particularly in markets with floating currencies like Jamaica.

Answer

CEO Balan Nair noted that with over 70% of business in U.S. dollars or pegged currencies, the company's exposure is limited, though he acknowledged potential risk from tariffs on imported equipment. CFO Christopher Noyes specified that the main floating currencies are in Jamaica and Costa Rica, which have been relatively stable. He also confirmed the company uses forward hedging strategies to manage currency mismatches where possible.

Matthew Harrigan inquired about potential tailwinds for the Liberty Networks business from increased data center and hyperscaler activity in the region, and also asked about any political or regulatory risks or opportunities arising from the situation in Venezuela.

Answer

CEO Balan Nair and executive Ray Collins responded, identifying Panama, Costa Rica, and Mexico as key data center opportunities. Ray Collins highlighted that their new subsea network is specifically designed to connect hyperscale data centers in Mexico to the US and Colombia. Regarding Venezuela, Balan Nair stated that while they monitor the situation and serve some customers there, they have no current plans to enter the market directly, though they remain opportunistic about dislocated markets like Venezuela and Argentina for the long term.

Matthew Harrigan of Benchmark asked how Formula One plans to better monetize its growing younger audience, who engage with short-form social content rather than full-length linear broadcasts.

Answer

Formula One CEO Stefano Domenicali explained the strategy is to build a 365-day ecosystem, tailoring content to diverse consumer habits. Liberty Media CEO Derek Chang elaborated that not every touchpoint needs direct monetization. Social engagement acts as a top-of-funnel activity that drives fans toward other revenue streams like merchandise, race attendance, or influencing family and friends, thereby building the entire F1 universe.

Matthew Harrigan asked about strategies to better monetize the massive social media engagement, especially from younger fans with shorter attention spans who may not watch full races.

Answer

CEO Stefano Domenicali described a long-term strategy of 365-day-a-year engagement to build a new revenue stream over time. CEO Derek Chang added that the goal is to build a complete ecosystem where social media engagement, while not always directly monetized, drives value by leading fans to other commercial touchpoints like merchandise, race attendance, or other F1 experiences.

Matthew Harrigan of The Benchmark Company asked about the strategy to grow Formula E's value, similar to Formula One's success, and inquired about potential catalysts for monetizing 5G on the consumer side.

Answer

Executive Chairman Michael Fries explained that while Formula E is not trying to be Formula One, it is a 'rocket ship' focused on compelling racing and attracting a younger, diverse audience. On 5G, he reiterated that the primary monetization opportunity remains in the enterprise segment (network slicing, private networks), though the eventual move to standalone 5G could open more consumer possibilities over the long term.

Matthew Harrigan asked a conceptual question on whether the NetCo/ServCo split is designed to allow the ServCo to better participate in value creation from adjacent areas like fintech and entertainment.

Answer

Executive Michael Fries responded that it is a possibility. He believes the structure positions both the NetCo and ServCo to be more competitive long-term. A more agile ServCo can focus on driving services, while the NetCo becomes a sophisticated connectivity provider. While not a guaranteed solution to capture more value from the ecosystem, he stated the model 'bends that way' and could help make the next decade different from the last for the industry.

Matthew Harrigan of The Benchmark Company asked for a strategic comparison of Liberty Global's more stable video business against its U.S. peers and questioned if the NetCo structure could better enable the company to capture value from new technology growth.

Answer

Michael Fries, CEO of Liberty Global, agreed that Liberty's video business is more stable, with lower subscriber losses and stronger margins compared to the U.S. market. He emphasized that Liberty's growth drivers are mobile and B2B. Regarding NetCos, he explained that value created accrues to the OpCo owners, and while the ventures portfolio invests in related areas, the ownership and governance of these opportunities remain distinct.

Matthew Harrigan questioned WOW!'s strategy for its existing HFC plant, its competitiveness against FTTH, and the company's plans and timeline for upgrading to DOCSIS 4.0.

Answer

CEO Teresa Elder described a dual strategy: building FTTH in greenfield markets while enhancing the legacy HFC network. She confirmed the entire footprint is on DOCSIS 3.1, offering 1.2 gig speeds, and that the company is on a selective, targeted path to DOCSIS 4.0. Elder emphasized that capital allocation for network evolution is driven by a robust financial model to ensure competitiveness and the best return on investment across all markets.

Matthew Harrigan asked about macro risks, including potential reductions in healthcare and fiber subsidies under a new administration, and GCI's resilience to an economic recession.

Answer

GCI CEO Ronald Duncan explained that Alaska's economy is often countercyclical due to its energy sector, which he sees having upside. He acknowledged Starlink will likely qualify for grants but believes fiber's capacity remains superior for large customers. Duncan also confirmed healthcare subsidies are material to results but stated the risk of significant changes from a pending Supreme Court case is low.

Matthew Harrigan asked how the company is adapting to and monetizing new forms of fan engagement like social media and sports betting, which don't always translate to linear viewing, and also requested an update on the Braves' international development strategy.

Answer

Executive Derek Schiller explained their strategy is to maximize content accessibility across all platforms, including short-form content on social media, to meet fans where they are. On international development, he noted the team's large global following, a legacy of its superstation history, and highlighted the upcoming MLB All-Star Game in Atlanta as a key opportunity to showcase the brand to a worldwide audience.

Matthew Harrigan asked how the company monetizes modern fan engagement like social media and betting that may not translate to linear viewing, and also requested an update on international development efforts.

Answer

Executive Derek Schiller explained their strategy is to maximize content accessibility on all platforms, including robust social and short-form content, to meet fans where they are and convert that engagement. On international efforts, he noted the team's large global following from the TBS superstation legacy and highlighted the upcoming All-Star Game as a key opportunity to showcase the Braves to a worldwide audience.

Matthew Harrigan asked for commentary on the status of sports betting legalization in Georgia and the company's perspective on emerging media opportunities like AR, VR, and video games.

Answer

Executive Derek Schiller expressed frustration that sports betting is not yet legal in Georgia, reiterated the company's support for its legalization, and expressed hope for legislative action. On new media, Schiller acknowledged that the company is actively exploring opportunities in AR, AI, and other platforms to deliver unique content to fans, but stated they have no specific solutions or announcements at this time.

Matthew Harrigan asked for commentary on the status of sports betting legalization in Georgia and from an MLB perspective. He also inquired about the company's strategy for the video game market and emerging technologies like AR and VR.

Answer

Executive Derek Schiller expressed frustration that sports betting is not yet legal in Georgia and reiterated the company's support for its legalization. On new media, Schiller acknowledged that the Braves and MLB are exploring opportunities in AR, AI, and other technologies to create unique content for fans, but stated they have no specific solutions or announcements at this time and are still evaluating the landscape.

Asked about trends in talent compensation, the role of AI in cost savings, and the lessons learned from the movie Borderlands.

Answer

Talent compensation remains high, so cost savings focus on smart production and innovative deal structures rather than lower talent fees. The lesson from Borderlands is the critical importance of matching script, talent, and budget for theatrical releases, and the company's greenlighting process has evolved accordingly.